benefit realisation management
DESCRIPTION
How to create Benefit Realisation Management maps and use them for different project management activitiesTRANSCRIPT
Benefit Realisation Management
Bruce Levitan
Head of Business Improvement
MMU
Agenda
• Building Benefit maps
• Using BRM in projects
Stakeholder Analysis
Risk identification
Business Case
Prioritisation
Product Catalogues
Benefit mapping
Building a benefit map 1You start by identifying the main objective (a benefit in itself)
If there is more than one objective, you will need one benefit map for each one
You then identify contributing benefits working right to left
For example, here are four benefit maps that were done for MMU’s EQAL programme
3
Building a benefit map 1The objective is placed at the far right, in an ellipse
4
Increased enrolments
Building a benefit map 2Identify the main supporting benefits
Benefits should always be written in the form:[improvement + object] e.g. “increased revenue”
PM-BRM 5
More new applicants
Better applicant
conversion
More quality time with applicants
More focused advice
Increased enrolments
Building a benefit map 3Working from right to left, identify supporting benefits for one “area”
Friday, November 21, 2014 PM-BRM 6
Less applicant
frustration
Better customer
service
Improved image
More new applicants
Better applicant
conversion
More quality time with applicants
More focused advice
Increased enrolments
Fewer errors
Building a benefit map 4aWorking from right to left, continue to identify benefits
Friday, November 21, 2014 PM-BRM 7
Fewer errors
Less applicant
frustration
Increased productivity
Less unpaid overtime
Better staff morale
Better customer
service
Improved image
More new applicants
Better applicant
conversion
More quality time with applicants
More focused advice
Increased enrolments
Building a benefit map 4bWorking from right to left, continue to identify benefits
Friday, November 21, 2014 PM-BRM 8
Fewer errors
Less applicant
frustration
Increased productivity
Easier application processing
Less unpaid overtime
Better staff morale
Better customer
service
Improved image
More new applicants
Better applicant
conversion
More quality time with applicants
More focused advice
Increased enrolments
Building a benefit map 4cWorking from right to left, continue to identify benefits
Friday, November 21, 2014 PM-BRM 9
Fewer errors
Less applicant
frustration
Increased productivity
Easier application processing
Better MI on applications /enrolments
Less unpaid overtime
Better staff morale
Better customer
service
Improved image
More new applicants
Better applicant
conversion
More quality time with applicants
More focused advice
Increased enrolments
Building a benefit map 5The next stage is to identify the activities that will deliver the benefits
These are called “enablers” and “business changes”
Typical enablers include:
• IT systems
• Physical assets (a lecture theatre, books)
• Activities such as training and documentation
Business changes include:
• Changes to processes
• Policies
• Restructures
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The completed map
Friday, November 21, 2014 11
Fewer errors
Less applicant
frustration
Increased productivity
Easier application processing
Better MI on applications /enrolments
Less unpaid overtime
Better staff morale
Better customer
service
Improved image
More new applicants
Better applicant
conversion
More quality time with applicants
More focused advice
Increased enrolmentsRevise
process
Provide training
Upgrade system
Reporting
Business change
Enabler
Areas where BRM helps PM
Friday, November 21, 2014 PM-BRM 12
Stakeholder Analysis
Risk identification
Business Case
Prioritisation
Product Catalogues
Stakeholder Analysis1. Helps identify stakeholders by asking the question “who will be
impacted by this benefit?”
Friday, November 21, 2014 PM-BRM 13
Management reporting: SPMI, Executive
Corporate risk: SPMI
Retention: students, Finance, Faculties
Satisfaction: students, academic staff, non-academic staff
Stakeholder Analysis2. Helps identify
what to communicate to stakeholders by linking the stakeholder to the benefit(s) they have an interest in
Friday, November 21, 2014 ESRA 14
Stakeholder
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Benefits 1. Less staffing resource required to
support key business processes.
2. Protection of HEFCE ‘T’ funding stream.
3. More staff time available for other activities.
4. More efficient use of other institutional resources, e.g., space.
5. Improved integration of key business processes.
6. Improved quality assurance of key business processes.
7. Consistent operation of key business processes across the institution.
8. Transparent operation of key business processes across the institution.
9. More student-centred approach to the delivery of services.
10. Ability to deliver key external requirements, e.g., the HEAR.
11. Improved personalisation of timetabling information.
12. Better information on changes to timetables.
13. Better quality information on curriculum structures and content.
14. Improved access to information on curriculum structures and content.
Risk identificationFor each benefit on the benefit map, ask the questions:
1. What could prevent this benefit from being realised?
2. How many other benefits are affected?
The answer to (1) is the risk, and the answer to (2) helps to give a measure of impact.
If your benefit mapping uses weighting scores (which we’ll come to later), then you can add up the weights of the impacted benefits in (2) to get a better measure of impact.
Friday, November 21, 2014 PM-BRM
Risk Analysis – exampleUsing the benefit “Fewer errors”…
Friday, November 21, 2014 PM-BRM 161Model taken from:
Gerald Bradley (2010) Benefit Realisation Management, 2nd Ed
Fewer errors
Less applicant
frustration
Increased productivity
Easier application processing
Better MI on applications /enrolments
Less unpaid overtime
Better staff morale
Better customer
service
Improved image
More new applicants
Better applicant
conversion
More quality time with applicants
More focused advice
Increased enrolments
1. Errors not reduced by new processes and system
2. New types of error created
Impact = 10
Business Case• Use the matrix to sort out which
benefits are Tangible / Intangible, and for the tangibles, which are Financial / Non-financial.
• Financial benefits should then be worked on to estimate what income they will generate – to be used in the return on investment part of the financial analysis.
• Non-financial benefits are used in the business case to show benefit beyond mere cost & income.
Friday, November 21, 2014
Business CaseItem Cost / Income (£ ) Recurring cost / Income (£)
COSTS:
Timetabling system 350,000 35,000
VLE (Moodle) 500,000 40,000
Timetabling staff 250,000
E-Learning Support Officers 250,000
Total costs: 850,000 575,000
SAVINGS:
Timetabling savings 35,000
Fewer learning resources 20,000
Fewer assessments/units 150,000
Total savings 205,000
Overall cost: 850,000 370,000Friday, November 21, 2014
Business Case
Friday, November 21, 2014
Benefit Measure
Increase retention of Students Produce baseline numbers and monitor increase
Value to the Student Monitoring students who are re-engaged who complete and are successful in Award
Maintain Income Retaining 62 full time paying students would generate return on investment of Project costs. Any number above this would ensure income targets are retained
Please see Return on Investment breakdown below.
Provide more qualitative time to Academic to enable intervention and follow up actions
Increase in Student Retention due to interventions and support provided
Provide additional information on course health
Quantity of Unit Leaders and Programme Leaders accessing and reviewing via CMI system
Provide clarity of Roles and Responsibilities
Responsibilities are progressed in timely fashion
Greater institutional oversight of students who require support
Immediate access to meaningful and timely data
Be pro-active with internal and external demands for engagement data
Timing comparison to provide requested data
PrioritisationTwo approaches:
• Simpler approach is to assess which changes enable most benefits –this is done by adding business change requirements and enablers to a benefit map.
• More complex example is to add weighting scores to benefits, and then by association to business changes and their enablers: this will give a numerical score that can be used to prioritise changes (and enablers).
Friday, November 21, 2014 PM-BRM
Prioritisation (simple)
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Fewer errors
Less applicant
frustration
Increased productivity
Easier application processing
Better MI on applications /enrolments
Less unpaid overtime
Better staff morale
Better customer
service
Improved image
More new applicants
Better applicant
conversion
More quality time with applicants
More focused advice
Increased enrolmentsRevise
process
Provide training
Upgrade system
Reporting
Business change
Enabler
Prioritisation (weighted - 1)
Friday, November 21, 2014 22
Fewer errors
Less applicant
frustration
Increased productivity
Easier application processing
Better MI on applications /enrolments
Less unpaid overtime
Better staff morale
Better customer
service
Improved image
More new applications
Better application conversion
More quality time with applicants
More focused advice
Revise process
Provide training
Upgrade system
Reporting
Business change
Enabler
Increased enrolments
(1000)
Start with an overall weighting score
Prioritisation (weighted - 2)
Friday, November 21, 2014 23
Fewer errors
Less applicant
frustration
Increased productivity
Easier application processing
Better MI on applications /enrolments
Less unpaid overtime
Better staff morale
Better customer
service
Improved image
More new applications
(400)
Better application conversion
(300)
More quality time with applicants
(200)
More focused
advice(100)
Revise process
Provide training
Upgrade system
Reporting
Business change
Enabler
40%
30%
10%
20%
Increased enrolments
(1000)
Add % contribution & add appropriate score to supporting benefits
Prioritisation (weighted - 3)
Friday, November 21, 2014 24
Fewer errors
Less applicant
frustration
Increased productivity
Easier application processing
Better MI on applications /enrolments
Less unpaid overtime
Better staff morale
Better customer
service
Improved image
More new applications
(400)
Better application conversion
(300)
More quality time with applicants
(200)
More focused
advice(100)
Revise process
Provide training
Upgrade system
Reporting
Business change
Enabler
40%
30%
10%
20%
100%
40%
60%
20%
80%
100%
Increased enrolments
(1000)
Continue to work back from right to left
Prioritisation (weighted - 4)
Friday, November 21, 2014 25
Fewer errors (540)
Less applicant
frustration (400)
Increased productivity
(280)
Easier application processing
(140)
Better MI on applications /enrolments
(140)
Less unpaid overtime
(120)
Better staff morale (120)
Better customer
service (580)
Improved image (400)
More new applications
(400)
Better application conversion
(300)
More quality time with applicants
(200)
More focused
advice(100)
Revise process (300)
Provide training (108)
Upgrade system (218)
Reporting(194)
Business change
Enabler
40%
30%
10%
20%
100%100%100%
40%
60%
20%
80%
100%
100%100%
100%
50%
50%
40%
20%
60%
40%
10%
30%
100%
Increased enrolments
(1000)
PrioritisationTwo approaches:
• Using the “simple approach”:– Provide training = 11 benefits supported
– Revise process = 12 benefits supported
– Upgrade system = 12 benefits supported
– Reporting = 13 benefits supported
• Using the “weighted approach”:– Provide training = 108
– Revise process = 300
– Upgrade system = 218
– Reporting = 194
• So they both have the same “least” option, but differ on the “most”! Which is best? Neither – they are basis for discussion!
Friday, November 21, 2014 PM-BRM
Product Catalogues• Product (and requirement) catalogues can be linked to benefits via the
benefit map, and these can help inform acceptance criteria and user tests.
• For example “Reporting” is linked to “Fewer errors” and “Better MI on
customers and sales”, so acceptance criteria can include Reports on :– error rates
– types of error
– source of error
– applicants (broken down by demographics, age, ethnicity, etc.)
– enrolments (broken down by demographics, location, A levels, etc.)
• Exercise:– Identify some acceptance criteria for the remaining enabler and one of the
business changes
Friday, November 21, 2014 PM-BRM